September 2015

September 23, 2015

If you Google this term you will find pros and cons about Debt Invalidation Programs. So, lets clear the record. Debt Invalidation is not so much a program, as it is a set of laws that debt collectors must adhere to when trying to collect a debt. The invalidation part means simply that just because I call you demanding payment for a debt I say you owe, I must have the ability when and if challenged to be able to legally demonstrate that 1: the debt is real, and 2: you really owe it. You would be amazed how many debt collectors cannot validate a debt that they insist you pay or have slammed your credit report with.

In fact there are over a dozen consumer laws that cover debt invalidation both state and federal. When used by someone who understands them they can be extremely powerful. So this is not an article on how to use these laws however I will explain one way to use them coupled with Debt Settlement that will make them extremely powerful and get you a lower settlement.

The first part of any Debt Settlement Program should be debt invalidation. This puts the collector on notice that the settlement company is going to be very aggressive in getting you the best settlement, and I guarantee it works. In the majority of instances no collection company can answer a well crafted invalidation attack, or a forensic audit. That’s because the full trail of paperwork that supports your debt, if it is your debt, rarely follows their purchase of the debt. No matter what a collector tries to say they are required to validate the debt when asked or simply remove it from your credit report iof they cannot and cease collection efforts.

So, when debt invalidation is coupled with other elements of a debt settlement program the result is often and faster and lower settlement. Couple that with representation by an attorney who understands this process and that is debt settlement on steroids.

If you are interested in the program simply visit American debt Enders.

September 21, 2015

So if you need debt relief and you check out google for research, you will find plenty of companies out their ready to enroll you in a program. The question is, is it the right program for you and your situation? No two people with debt problems are alike, and not all companies are created equal. It is extremely important to be in a program that best matches your situation and temperament so that you do not become discouraged half way through and drop out, and have to start anew.

So, how do you the consumer achieve this? The main thing is to find a credit counseling company whose counselors have been trained to ask you the right questions and also fully understand the way that each program offered works so that they can clearly explain it to you.

Honesty during the counseling session on the part of both the consumer and the counselor is very important. You do not want a counselor offering you a program that pays he or she the highest commission!

Most credit counseling companies only offer one basic program. For example, National Debt Relief specializes in Debt Settlement, Debt Wave, specializes in Debt Consolidation also known as Debt Management. American Debt Enders offers Debt Consolidation, Debt Settlement, Pay Day Loan Relief, Federal Student Loan Relief, Private Student Loan Relief and Debt Invalidation and rather than being generalists are also have individual counselors who are experts at each of these individual area. It is an approach that just gets better and better and says we are true experts at all forms of debt relief. The completion rate for all of our programs is among the highest in the industry, with drop outs usually occurring because of a life changing event.

I hope you have found this article to be helpful, and if you need guidance in matters concerning debt relief, please feel free to call. The counseling is always free.

September 18, 2015

So you finally realize you have a real debt problem. Somehow, the constant ringing of your telephone with people looking for money, no, not the donations kind, is a dead giveaway. But, where to begin. First of all, you need to evaluate if Debt Settlement is actually what you need in terms of debt relief. Making that decision is for another article, however, if you have determined that debt settlement is the program that you need, then by all means, keep reading.

5 years ago the FTC stepped in and regulated the settlement industry. Frankly, it was the best thing that could have happened. You could feel the breeze when the unscrupulous operators left the industry. this was a good thing for everyone.

So lets move on to the two types of settlement available.

First, there is the simple non attorney settlement model. You establish a monthly payment you can afford, that payment goes into a third party bank account which you have control over. That means you can close it anytime and take the money that has built up. Note: There is really no reason to do this unless you plan on withdrawing from the program, because that money is what will be used to make the actual settlements when the time comes.

During this build up time usually the original creditor sells the debt to a debt collector for much less than the present balance. The bank collects on an insurance policy that protects them from the default, And the debt collector who has purchased the debt is looking to just make a profit on the debt that they purchased for less than face value. The settlement is negotiated by the settlement company, usually debts are negotiated down for about 35% of the original debt. Once the settlement is agreed to the settlement company concludes the deal by completing the paperwork, which releases the account and places a notation on your credit report that says that the account has been settled as agreed, thus lessening the effect of the negative notation om your credit report. The completion of the paperwork is very important.

The settlement company charges a fee after each successful settlement,

Fees can range anywhere from 12 percent to 20 percent.

Debt Settlement, The Attorney Model Plus. Ok, yes this model looks to settle your debts at the same 35%, but I call it debt settlement on steroids! Not needed by everyone, but if you have an income you do not want to have garnished, strongly consider it. In this model, yew the fees are higher but you will have an Attorney available should you be sued or subpoenaed by a creditor before the debt settles. For example, Discover is known to be very litigious and will serve a subpoena just to let the world know that they do not like settlement.

Additionally, some Attorney model programs have cleverly combined settlement with debt invalidation. This can be super powerful. In a nutshell, debt invalidation turns the tables on the creditors by forcing them to legally produce documents that are legally required for them to collect the debt. This can actually make you money if they have violated your consumer rights or easily force them into a settlement. the really good news is that this type of program with usually higher fees can be even cheaper than the conventional model, depending on how it is structured, so not to worry.

Well that is it. Hopefully enough information to guide you to the proper settlement program. Yours Truly